Hollis Johnson/Business Insider Tesla Model 3.
- Tesla has raised the price of its least-expensive Model 3 sedan from $35,000 to $35,400, the company confirmed to CNN on Tuesday.
- The $400 price increase is relatively small, but Tesla has previously touted the Model 3's $35,000 starting price as the fulfillment of a longterm goal to use the proceeds from high-end electric cars to fund the development of affordable models.
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Tesla has raised the price of its least-expensive Model 3 sedan from $35,000 to $35,400, CNN reported.
The electric-car maker did not immediately respond to Business Insider's request for comment about the change.
While the reported price increase is relatively small, Tesla had touted the Model 3's $35,000 entry-level price before it started taking reservations for the vehicle, which the company framed as the fulfillment of a longterm goal to use the proceeds from high-end electric cars to fund the development of affordable models.
Tesla began delivering high-end versions of the Model 3 in July 2017 but struggled to hit production targets for the next year amid excessive automation at its Fremont, California, assembly plant. As the company smoothed out its production process, CEO Elon Musk said it needed more time to make the $35,000 Model 3 profitably.
In February, the company began allowing customers to order the $35,000 Model 3, known as the standard-range trim, but less than two months later it removed the standard-range trim from its online-order page, saying customers could order it only by phone or in one of the company's stores.
Tesla said demand for the standard-range trim was much lower than that for the standard-range-plus trim, which starts at $39,900, and said removing the standard-range trim from the online menu would increase efficiency and lower costs. The company also said standard-range customers would receive standard-range-plus Model 3s with software that would reduce their range and restrict some capabilities.
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